Dollar starved Government is now offering more benefits for migrant workers with the aim of encouraging them to provide more much needed foreign exchange for the country in economic dire straits at present, official sources said.
Remittances by Sri Lankans employed abroad have been an important flow of foreign exchange into the country, with an annual average value of over US $ 7 billion in the past five years.
But it was at $ 359.3 last month ,$ 325 million in August $279.50 in July of 2022 recording to unbelievable drop in the past few months.
Considering the importance of this steady non-debt inflow, the Government and the Central Bank are in the process of taking steps to ensure that remittances reach their full potential in a manner that is beneficial to the worker as well as to the country.
In order to encourage migrant workers to remit dollar in proper banking channels the government ha s introduce an incentive package for migrant workers, which includes pension/superannuation benefits, accident/life insurance benefits, banking facilities including low interest loans for housing and / or self-employment on return to Sri Lanka, and enhanced duty-free concessions.
Sri Lankans fed up with the country’s economic crisis are increasingly desperate to go abroad, where they can make the most of the rupee’s plunge and help their families survive hyperinflation through heftier remittances.
The foreign currency-starved government, in turn, appears all too happy to let them go, though experts warn that the South Asian nation is at risk of worsening brain drain.
Sri Lanka has seen a tenfold increase in migrant numbers in the last two decades, and current estimates suggest that about 1.7 million migrants work abroad, with an annual outflow of about 200,000 persons.
The Cabinet of Ministers, at its meeting held on Tuesday (Oct. 25), has green-lighted the implementation of two measures proposed to further promote migrant worker remittances.
Accordingly, Sri Lankan migrant workers will be allowed to import four-wheeled electric vehicles equivalent to 50% of the value of remittances they have transmitted to Sri Lanka through official channels from May 01, 2022 to December 31, 2023.
In addition, Sri Lankan migrant workers will be permitted to import motorcycles equivalent to 50% of the value of remittances they have transmitted through legal channels until April 30, 2023 or the day application is submitted.
On August 31, the Ministry of Labour and Foreign Employment issued a circular to allow migrant workers to import electric vehicles.
As per the decision taken by the government, a migrant worker who has transferred more than US$ 3,000 would be allowed to import an electric motorcycle, worth US$ 25,000 or less.
Meanwhile, it was decided that those who have transferred more than US$ 20,000 would be allowed to import an electric car priced half of the amount transmitted to Sri Lanka, up to a maximum of US$ 65,000
